Re: st: Re: Two-way random model for Panel Data

Daniel,
it may be wise to rethink if you really need/wish to estimate a two-way
random effects model. The assumption of modeling the cross-sectional
specific effects as random requires a large cross-sectional dimension (N).
Further, the assumption of modeling the time effects as random requires
that you have a large number of time periods available (T), i.e. that T is
large relative to N, which is rarely the case in practice - that's why
STATA cannot readily do that, I suppose. And remember that if T>N, then you
don't need to use a panel regression - this is too restrictive, you can use
SURE.

Vasilis

On Mar 1 2005, daniel perez wrote:

Mark,

Do you have any suggestion to compute a two-way random
effects model ?
Thanks
Daniel